Archive for category: Ron Wilson

Reskill and Upskill Plan

Guest writer Ron Wilson brings a blog post on lifelong learning this week with “Reskill and Upskill Plan.”

I came across a book titled “Long Life Learning” written by Michelle Weise. The title intrigued me due to my interest in and commitment to Lifelong Learning.  The need for skills changes along the way and this book does an excellent job of sharing the why’s and how’s of the challenge.

Here are a few quotes from the book that will help set the importance of the rest of the article.

• Workers who are fifty-five and older are staying in the workforce well into their 60s and 70s.
• Many of the baby boomers will experience at least twelve job changes by the time they retire.
• The number of job transitions will only increase with time, as people confront longer and more turbulent work lives.
• Education has largely been thought of as a “one and done” experience.
• Technology’s transformation of nearly every facet of our economy means that we will all need to develop new skills and knowledge at a pace and scale never seen before.
• The future of work changes the future of learning.

Developing a Personal Reskill and Upskill Plan

The bullet points above, and many other examples in the book, identifies the importance and provides direction in developing a personal reskill and upskill plan that will be critical in success of our business, and our employees.

Developing a personal reskill and upskill plan is crucial in today’s rapidly evolving professional landscape. Here are several key reasons why it is important:

1. Adaptability to Technological Changes

• Technological Advancement: We have all experienced the challenges of implementing a new business system and updated technology within an organization. Industries are experiencing rapid technological advancements, requiring continuous learning to stay relevant. Automation, AI, and digital transformation are changing job requirements. In a previous blog I shared the expansion of the “Tool Belt Generation” job titles and career paths that are providing many new opportunities to the employees of today. New roles, new skills, and upgrading old skills.
• Job Market Evolution: Roles that exist today might be obsolete tomorrow, while new roles will emerge. Reskilling and upskilling ensure individuals can transition smoothly into a new job function. Reskilling and upskilling will play a significant role in addressing the labor shortage issues.

2. Career Growth and Opportunities

• Enhanced Employability: Employers value employees who are proactive about their learning. A well-rounded skill set makes individuals more attractive to current and potential employers.
• Promotion and Salary Increase: Upskilling can lead to higher responsibilities, promotions, and better compensation. Demonstrating a commitment to ongoing learning can also increase an employee’s chances of career advancement.

3. Personal Development and Job Satisfaction

• Increased Confidence: Gaining new skills boosts confidence and empowers individuals to take on new challenges.
• Job Satisfaction: Engaging in continuous learning can lead to greater job satisfaction as employees feel more competent and capable in their roles.

4. Economic Stability

• Job Security: Continuous learning helps in maintaining job security in an unpredictable economic climate. Employees with a broad skill set are more likely to retain their jobs during layoffs.
• Financial Resilience: With a diverse skill set, individuals can explore freelance opportunities or transition between industries more easily, contributing to financial stability.

5. Innovation and Creativity

• Encouraging Innovation: Learning new skills can spark creativity and innovation. Employees who bring fresh perspectives and innovative ideas are invaluable to organizations.
• Problem-Solving: A diverse skill set enhances problem-solving abilities, enabling employees to approach challenges from various angles.

6. Lifelong Learning Culture

• Adaptation Mindset: Developing a habit of continuous learning fosters a growth mindset. This mindset is essential for personal and professional development.
• Setting an Example: Individuals who prioritize their own learning can inspire colleagues and peers, contributing to a culture of continuous improvement within the organization.

7. Navigating Career Transitions

• Career Shifts: Whether by choice or necessity, reskilling and upskilling provide the tools needed for successful career transitions. This is particularly important for those switching industries or roles.
• Futureproofing: Proactively acquiring new skills can future-proof a career, preparing individuals for unforeseen changes in their professional paths.

Developing an Effective Plan. 

Now that we have listed several reasons why Reskill and Upskill plans are important, let’s look at what a personal reskill and upskill plan may consist of:

1. Assess Current Skills: Identify strengths and areas for improvement. Regularly assess the current skills of employees to identify gaps and areas for development.
2. Offer Diverse Learning Options: Provide a variety of learning formats such as workshops, online courses, mentorship programs, and on-the-job training.
3. Set Clear Goals: Align Training with Business Goals: Ensure that reskilling and upskilling initiatives are aligned with the strategic goals of the organization. Define what you want to achieve, and the skills required to reach those goals.
4. Research Trends: Stay informed about industry trends and emerging skills. Look outside the dealership in other industries and how similar roles have changed.
5. Create a Learning Path: Choose courses, workshops, or certifications that align with your goals.
6. Allocate Time: Dedicate specific time for learning and practice regularly.
7. Seek Feedback: Engage with mentors or peers for constructive feedback.
8. Monitor Progress: Regularly review your progress and adjust your plan as needed. Track and Measure Progress: Monitor the effectiveness of training programs and adjust as needed to ensure the evolving needs of the organization and its employees are being met and accomplished.
9. Encourage Lifelong Learning: Foster an environment where continuous learning is valued and encouraged.
10. Provide Support and Resources: Offer the necessary resources, including time, funding, and access to learning platforms, to support employees’ development.

This all sounds complicated and time consuming, but start here:

• A few roles across the organization and expand systematically.
• Review the current job descriptions and the changes required to meet the needs of the future.
• Identify avenues of training. This may be accomplished in-house, with local community colleges, professional dealer training organizations (such Learning without Scares), and professional certification programs. Most likely it will be a combination of the available resources.
• Define a training path that includes length of training time, length of executing/practicing the new skills, assess the success of the training.
• Celebrate along the way.

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Applying Services Marketing within the Equipment Dealers Business Model

Guest writer Ron Wilson offers an instructive guide in this week’s blog post: “Applying Services Marketing within the Equipment Dealers Business Model.”

Marketing plays a critical role within the equipment dealership. Two of the basic functions are to promote the Products and Services for the equipment the dealership sells and services. To successfully accomplish this there are two types of marketing utilized:

• Product Marketing- focuses on a specific product, features/benefits, comparing one product to another, product application. 
• Services Marketing– Utilizes marketing strategies that apply customer-centric approaches, builds trust with the customers, and how the dealer’s services can support the customer and the products that were purchased. The offerings will often include benefits, promises, commitments in savings, safety improvements, turn time commitments, and firm pricing. All of which are focused on building trust and relationships.

The remainder of the article will focus on the history and application of Services Marketing.

A Brief Timeline of Key Developments in the History of Services Marketing 

• 1950s-1960s:  The Services Sector arises as the economies shift from manufacturing to service-oriented markets.
• 1970s: The 4Ps of marketing were expanded to include People, Physical Evidence, and Processes.
• 1980s: Growth of Services Marketing Literature grew to academic research and focus services marketing, which included an emphasis on service quality and customer satisfaction.
• 1990s:  Digital transformation and customer experience evolved due to the internet and digital technologies/
• 21st Century:  Services marketing continues to advance with the inclusion of data analytics and artificial intelligence with a focus on improving interactions and personalizing of the customer experience.

The formation of Services Marketing has focused on the challenges and addressing opportunities within a unique market.

Apply Services Marketing in the Heavy Equipment Dealers Business Model

Services Marketing applied in the heavy equipment dealer’s business model will contribute to the enhancement of customer satisfaction, customer loyalty, revenue growth, and introduction of new product support offerings.

Strategies to Effectively Implement Services Marketing within the Dealers Territory

• • Identify and Understand the Customers’ Needs:
    • Understand the specific needs and preferences of the customers within specific markets. For example, in many cases the needs of the small fleet owner will be different than a large fleet owner, or governmental agencies.
    • Identify the challenges faced by the customers, including frequency and severity of the application.

• Segmenting and Targeting of the Market:

• • • Segment the market based on factors such as fleet size, industry, type/size of machines, local work environments (weather, altitude, job site restrictions)
    • Identify how tailoring the services can assist in meeting the needs of each segment.
  • Develop Value-Added Services:
    • Offer value-added services such as equipment maintenance, machine inspections, mobile air conditioning repairs, field machining services, extended warranties, hydraulic component rebuilds, machine second life rebuild options.
    • Operator and equipment maintenance/repair training for customers.
    • Proactive services connecting machine GPS data to schedule PM services, notifications of machine alerts such as overheats and over speed occurrences focused on preventing down time, improving utilization, and extended the life of the components of the machine while providing touch points with the customer.
  • Communication of the dealer offerings:
    • Clearly communicate the value-added service offering that includes additional benefits and features based on the needs of the customer. These needs would have been collected through customer surveys, focus groups, historical customer response surveys.
    • Utilizing various channels to communicate the offerings through online platforms, brochures, Product Support, Sales Representatives, and Parts Counter Sales personnel are a few examples of communicating the offer to the customer.
  • Build a strong online presence:
    • Establish and continually review and update the user-friendly website.
    • Utilize social media platforms, customer events, community events, local industry trade events that will provide an opportunity to share customer success stories and provide insight to the dealer’s approach of addressing customers business needs.
  • Customer Education and Training:
    • Offer training programs for customers that provide an opportunity to expose and familiarize the customers with the features and benefits of the services provided.
    • Provide educational content, reference materials, and tutorials that empower the customers and enhance their skills.
  • Responsive Customer Support:
    • Implement a responsive customer service process that addresses questions and concerns quickly.
    • Offer multiple channels of communication, including phone, email, and live chat. Quick and accurate responses are important.
    • Utilize the information received to modify and improve the messaging of the services offered.
  • Services Guarantees:
    • Provide service guarantees such as quick response times for maintenance requests, warranty offerings, firm pricing, timely invoicing.
    • Clearly outline the terms and conditions of the service guarantees to avoid confusion both with the customer and within the dealership’s service areas, such as the service department and the warranty department.

• Feeback Mechanism:

• • Establish a feedback process to gather insights from customers about their experiences with the new service offerings.
  • Utilize the feedback to continually improve and modify the service offerings.
• Collaborate with the OEM:
  • Partnering with the OEM can enhance the service offerings through program support, technical and historical information of other dealers that may have implemented a similar service offering.
  • Leverage the OEM certifications to build trust and credibility to the dealer’s offering. Fluids Lab certification, Root Cause Failure Analysis Certification, Hydraulic Technician Specialist, Certified Equipment Training Instructors are examples of certifications that can add value to an offering.
• Promotions and Loyalty Programs:
  • Promotional campaigns will highlight the new service offerings.
  • Implement or link to an existing loyalty program to encourage utilizing the new offering, reward repeat business, bundle with other offerings. All are intended to build long-term partnerships.
• Networking and Industry Involvement:
  • Participate in industry events, trade shows, and associations to stay updated on industry trends and build a network of contacts.
  • Collaborate with other businesses in the heavy equipment industry to expand the service offerings. An example would expand the hose and fitting business from the customer’s machines to re-hosing of garbage truck fleets as an expanded service offering within the waste/landfill customer base.

The above strategies can effectively assist the dealer apply the services marketing principles to create a competitive advantage and build long-term relationships with the customers.

Closing Remarks

While both services marketing and product marketing share common marketing principles, the unique characteristics of the dealer’s services offerings require different strategies and approaches to meet the marketing needs of the various customers.

Services marketing emphasizes the crucial elements such as customer-centric, variability (among customers), intangible (the tractor business is a people business), relationship building and delivery of exceptional customer experiences.

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The Four “R’s” Within a Talent Management Strategy

Guest writer Ron Wilson writes about one of the critical focus points of a business plan: the employees. Here he shares “The Four ‘Rs’ Within a Talent Management Strategy.”

Many years ago, we were developing business plans for the year and one of the critical areas of focus was Employee Retention and Recruitment. Retention and recruitment have been a challenge throughout our leadership roles, regardless of the department we lead, or the industry we are a participant in.

Within Employee Retention and Recruitment there are four areas of focus:

• Recruitment
• Retention
• Relationships
• Respect

Focusing on the four areas above will improve employee retention and attract the new talent needed for the future.

Recruitment– This “R” focuses on recruitment of talent from outside the organization. Recruiting to fill the immediate and long term needs for skilled talent in our industry will continue to be an obstacle to business growth potential. Therefore, out of the box creative approaches are necessary to recruit talent.

• Recruitment of talent from outside the organization should include a variety of approaches. There is no one successful approach in finding skilled talent and it’s important to continually evaluate what is working and seeking innovative approaches. Look at what other companies are doing (inside and outside the industry).

• Advertisements will take a focus on what the organization has to offer as a career and a long-term employer with very competitive wages and benefits, seeking employees that will take the company into the future. 
• Special events utilized to identify skilled talent. Some examples are rodeos, racecar and motor cross events, trade shows, and vocational schools. The intent is to reach communities where potential employees live their daily lives outside of work.
• Apprenticeship programs will be utilized to “grow” the needed talent from within and outside the organization. Participating in community college and high school technical skills education provides a wonderful opportunity to expose the company to individuals that are seeking a company that is not only a place to work, but also build a career.
• Shorten the time between posting a position and providing a job offer. Individuals applying for a position are ready to move forward with a new opportunity, and most likely are applying for several positions at other companies. Let’s not delay in reviewing the applications, scheduling interviews, and providing job offers. Develop a metric to measure the amount of time it takes to hire a new employee. It may be surprising the amount of time it takes to recruit, interview, and hire someone,
• If the applicant does not match the needs of the position being applied for, is there a role that may be a better fit within your organization? 

Retention– This “R” places a great deal of emphasis on developing the talent within the organization to meet the immediate and long-term skill set needed to take the organization into the future. 

• Development of internal talent will include the skill sets for technicians and non-technicians. 
  • The priority will include developing the skills in the basic skills needed to accomplish the individual’s current job responsibility.
  • Skills needed to prepare the employee for the next level in their career path. 
  • There should be a “building block” approach with career path options. For example, technical level 1-4 starts with the basic skill set needs of a technician to advanced troubleshooting and diagnostics. Additional advanced levels for a technician can include Technical Communicators, Service Department Supervisors/Managers, Product Support Sales Representatives, and Training Instructors. 

Respect for dealing with each other leads us through the challenges that will occur. There will not always be an agreement in everything we do, but everything we do can be managed in a manner of respect. The issues should be addressed based on the issue, and not on the person. 

Relationships that are positive between employees encourage an environment that allows growth and development as individuals and as teams. 

• Through positive relationships the organization will recognize the needs of the marketplace and introduce competitive products and services that add value to our customers. 
• Strong internal relationships encourage strong relationships with our customers.
• Recognition is important to all of us. It is important we seek the opportunities to recognize individuals and teams of employees on their successes and contributions to the organization. Each supervisor should develop their own way of providing employee recognition for their areas of responsibilities. The types of recognition will vary based on the event, the location, and the employees.

The Four “R’s” play a significant role within our talent management strategy of taking care of the current employees and seeking the employees needed for the future.

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1% Increase in Income Equals 2.6% Reduction in Expenses

Guest writer Ron Wilson dives into the financial management scene with this week’s blog: 1% Increase in Income Equals 2.6% Reduction in Expenses. He even touches upon something Ron Slee mentions frequently: the downside of discounts.

During complicated economic times businesses tighten up on expenses, spending, and accounts receivable. 

Rafi Mohammed, in his book “The 1% Windfall” provides an additional effort that can assist in meeting the needed changes to the bottom line.

Basically, the concept revolves around increasing income by 1%, without increasing the cost of sales, or reducing direct expenses.

The example below shows that a 1% increase in sales (without impacting cost of sales or direct expense) equals a 2.6% reduction of direct expenses. Apply your organization/department gross profit and pretax percentage to see the impact it has on your own organization.

We have all been through the difficult experience of reducing direct expenses, and it can be very painful.

Here are a few examples that can help to make a positive impact on sales without adjusting the direct expenses areas.

Current Status of Discount Programs– often discount programs are provided to customers based on a request from a salesperson. No doubt the programs may have been needed at a specific point in time, but a review of discount programs may show discounts being given that are not providing the expected increase in sales. Often the OEM provides some type of shared discount program over a specific timeframe. It is important to verify customers’ discounts reflect the OEM’s current program. An OEM may discontinue a rebate program and the dealer may not have applied the same changes and unintentionally may be caring the full burden of the discount being provided to the customer.

Effectiveness of Discount Programs-Verify the discounts are providing the expected results, which is usually increased volume, or expanded use of other products and services within the dealership. If the discount program was not effective, a different approach may need to be reviewed with the sales representative.

Below is a handy website that shows the impact discounting has on gross profits.

The example below applies to a 10% discount on $1 million in sales. Sales need to increase 20% to make up the same dollars.

https://www.growthforce.com/blog/how-giving-discounts-can-destroy-your-business-profits

This can be a great tool to share with the sales representatives when discussing providing a customer with a discount. What can be expected in increase volume over time?         

Providing Repair Options can offset the discount a customer is wanting on a component rebuild, for example. Rebuild options providing a “good-better-best” offering can accomplishing the customers rebuild needs within a specific price range. The variable rebuild options allows the dealer to rebuild a component that meets the level of rebuild needed by the customer within a selected price range. The repair options eliminate the “discount” of a full rebuild while providing a price based on the level of rebuild needed by the customer.

Value Based Pricing requires understanding the customers’ needs and priorities. For example, a customer is focused on reducing the hazards/injuries related to changing ground engaging tools (GET) on a piece of mining equipment. Promoting reduction of the number of GET changes will contribute to reducing the hazards as well as downtime to complete the GET change out. It may not always be about the dollars and cents.

When developing value statements your existing customers can be a great resource to find out what value you bring. Ask your customer to explain the real value of your offer. This will provide a view of their perspective, while building relationships with customers and at the same time it gives you a chance to learn an incredible amount of invaluable information.

Below is an example of a value statement that has identified four areas of importance to the customer. This information was taken from an ESCO GET (Ground Engaging Tool) promotional piece. As can be seen there is no discussion about “discounts,” the discussion is related to “value add” offerings:

Increased Machine Availability

• Superior alloys and optimized system profile result in longer-lasting components
• Simple, intuitive locks provide safer, faster parts replacement.
• Reliability and wear life unmatched in the industry keeps machines operating with minimal downtime.

Lower Maintenance Costs

• Proprietary alloy, increased lip protection and large bearing areas extend operating intervals.
• Longer lasting and more dependable G.E.T. reduces planned and unplanned service events.
• Quick and easy parts replacements by fewer crew members, with no hot work required.
• Shrouds and adapters are engineered to protect more of the Nemisys lip leading edge, extending the service life between lip rebuilds by up to 70%
• Improved wear metal placement increases shroud life by up to 30%

Lower Total Parts Expense

• Longer lasting and more dependable G.E.T. results in fewer parts purchased versus competitors.
• Fewer parts purchased reduces mine site inventory to ship, stock and manage.

Improved Safety

• Keep your crew away from crusher maintenance through superior locking systems that keep teeth and shrouds on the lip.
• Safer installation and removal with integrated pry points and compatibility with the ESCO SecureLift™ system

Best of Both Worlds

1% increase in Sales Without increasing Cost of Sales to Improve the Bottomline:  It would be unrealist to think the 1% increase model is the only option. No doubt there needs to be a combination of both direct expense management and reviewing the pricing models and programs currently in place. Below are some pros and cons that will show the importance of combining the two:

Advantages of the 1% Increase in Sales to Improve the Bottom Line:

• Incremental growth may seem small but overall can have an enormous impact on the bottom line.
• Growth in the business comes from income growth, not from reducing expenses.

Disadvantages of the 1% increase in Sales to improve the Bottom Line:

• The 1% increase is not guaranteed and takes time to implement. Reviewing and developing impactful value statements takes time and resources to research, understand, and develop.
• Takes time to implement, communicate, and evaluate the results of the changes implemented.

Reducing Direct Expenses to Improve the Bottomline:

• Has an immediate impact depending on how drastic the effort?
• May improve efficiencies through improvement/streamlining processes.
• Requires a focus on the core business and focus on what is important.

The best Solution is a Blending of the Two:

Take some time to review the various recommendations provided in “The1% Windfall”, while reviewing the rest of your key performance indicators, to provide a balanced improvement to the overall financial results. 

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Developing Your Personal and Employee Persona

Guest writer Ron Wilson explores the skills that we use in developing our personal and employee persona.

Over our work life a great deal of effort, education, time, and energy is spent on developing the “technical skills” relating to our careers. Technical skills relate to the technical part of any career. An accountant has technical skills relating to the specific role, just as an equipment technician has technical skills to perform repairs/rebuilds, troubleshooting and diagnostics of their career.

During our careers we develop a personal persona that is applied in our actions, roles, and responsibilities. As we progress through our career the types of information, skills, action needed changes and requires an ongoing balance of various skills development.

The skills needing to be developed can be placed into four areas:

• Technical Skills
• Personal Skills
• People Skills
• Operational Skills

Below is a diagram that shows an example of an employee’s personal and career persona. It is important to balance the skills developed in each of the areas. During a visiting with a Human Resource team, we discussed the most common reasons employees are terminated, or resign, and in most cases, it is not due to a lack of technical skills. The cause is usually related to one of the other three categories.

The diagram above really shows the importance of balancing the skills development of our teams. Making sure training and development opportunities are provided in each of the areas, and time is spent with the employee discussing the strengths and opportunities that will provide continued growth relating to the overall personal development.

The diagram below shows that our “Personal Persona” is identified in what we “say and think.”  The “Employee Persona” is often seen in what do (our performance) and our relationships with others. In our everyday work we combine and exhibit all four areas.

While serving on the board of directors at SkillsUSA Arizona I was introduced to the following diagram. I took this diagram and applied it to the equipment dealer work environment. SkillsUSA does an excellent job of developing the students’ work and persona to prepare them for future employment.

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